All through 2016, Nigeria’s economy was bogged by its first recession in two decades and strict currency policies amid low oil prices. But, 2017 was very different.
The latest data from Nigeria’s National Bureau of Statistics (NBS) shows Nigeria’s economy recorded 0.83% growth in 2017. The meager growth rate is a far cry from better days at the turn of the decade but given Nigeria’s recent tough times, it represents some progress. In comparison, Nigeria’s economy contracted -1.58% in 2016. Nigeria emerged from recession in the second quarter of 2017.
As Quartz has previously reported, much of that growth is linked to the rebound in global oil prices. It’s also the result of a boost to Nigeria’s oil production as the government continues to maintain a fragile peace pact with militants in the oil-rich south. Amid low oil prices in 2016, attacks on oil installations by militants hobbled Nigeria’s oil production which fell to 20-year lows. In 2017, Nigeria’s oil production peaked at 2.03 million barrels per day (mbpd) in the third quarter of the year, the highest point since the first quarter of 2016.
Like GDP growth, investor faith in the Nigerian economy is also picking up. Data from NBS shows that capital importation (a mix of foreign direct investment, portfolio and other investment) into the country by the end of the year reached $12.2 billion—more than double of 2016’s total.